Purchasing a loss making business

5 October 2017

I wonder if you are able to assist. I am looking to purchase a loss making company (£1.3m historial debts) and in order to achieve the turnaround strategy, I *think* I will need to liquidate the company. In essence I need to relieve the business of some difficult contracts, such as: - (possibly) some staff - premises lease - contract car lease(s) The remainder of the assets, liabilities etc I will want to take with us to a new company. Perhaps liquidating the business is a bit drastic? Perhaps you can help? I am looking for some advice as to whether this is a legal and appropriate approach and to work with someone through the liquidation process (if appropriate).

Keith's response:

Yes all legal, eminently sensible and there are at least three ways to do this. It just depends on your objectives, the vendor's objectives, any secured lenders requirements and the best tool for the job can be found below.

So, I am happy to talk to you about the processes but perhaps an overview of the target would give us a better steer. We do not charge for initial advice or meetings so I suggest you give me a call on 07974 086779 to describe your objectives for the business in more detail? I will need to know the debt structure (secured, tax and VAT and trade) the sector and your plans. You can keep it confidential for now if you wish.

If we both believe a meeting is appropriate we do not charge for the initial meeting. If we are appointed it is against a written agreement as to cost.

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Just a quick note to say a big thank you to all the staff at KSA, our CVA was passed today by creditors voting in an overwhelming number including HMRC to accept the proposal as prepared by KSA.

The road to reach today’s conclusion has been bumpy, but at each stage your team has supported and guided us through the issues and we have reached a very satisfactory outcome to the benefit of customers, staff, all creditors and shareholders.